NC CASUALTY INSURANCE EXAM PRACTICE

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NC CASUALTY INSURANCE EXAM PRACTICE

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -55 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All of the following statements concerning medical payments coverage in the Personal Automobile Policy are true EXCEPT?A) It provides medical expense coverage for the insured and any passengers in the vehicle.B) It pays regardless of fault.C) It can cover medical expenses incurred within three years of an accident.D) It can cover injuries caused by the insured to a pedestrian if they lose control of the vehicle.

Answer:

D

Question 2: Rates proposed by the Rate Bureau?

A) Must be conformed to by all companies.B) Are recommended rates that are not binding on the companies.

C) May be altered if such deviations are filed and approved.D) Identify rates that are excessive.

Answer:

C Question 3: A potential agent must have satisfied all of the following requirements prior to

effectuating insurance coverage in this state EXCEPT:

A) Received an appointment from an admitted insurer.B) Completed an educational course from an approved school.C) Posted a $50,000 surety bond.D) Received an insurance license from the Department of Insurance.

Answer:

C Question 4: Tim gave Bob a $75 gift certificate for buying insurance from him, this is called what?A) Twisting.B) Rebating.C) Defamation.D) Good Business.

Answer:

B

Question 5: When an agent signs a blank application for a client s/he is guilty of what?A) Misdemeanor.B) Felony.C) Rebating.D) Breaking the Privacy Protection Act.

Answer:

A Question 6: Damage to a windshield by a bird would be covered under which of the following?A) Collision.B) Comprehensive.C) Liability.D) Other-than-comprehensive.

Answer:

B Question 7: Under the PAP, supplementary payments could provide payment for all of the following expenses EXCEPT?A) Court costs if a civil lawsuit is defended.B) Charges incurred for renting a car when the insured's vehicle was disabled in a wreck.C) A parking garage fee that the insured incurs while attending a deposition at an attorney's office.

D) Lost wages the insured might suffer by attending court proceedings.

Answer:

B Question 8: The contract for transferring the risk of loss from an insured to an insurer is called what?A) Insurance.B) Insurable interest.C) Risks.D) Moral hazard.

Answer:

A Question 9: To sell an insurance policy to her neighbor, Agent Susan agrees to split her commission. This is an illegal practice known as?A) Misrepresentation.B) Rebating.C) Replacement.D) Twisting.

Answer:

B